Advantages

Disadvantages

Let’s face it—nothing in life is 100% perfect. But some of these so-called “disadvantages” deserve a closer look. For example, many people worry that a reverse mortgage will “eat away” at their home equity. But that’s not necessarily true—not when those funds are redirected into an appreciating asset like a Pacaso co-ownership property.

Instead of spending your reverse mortgage funds on temporary vacations or lifestyle expenses, you're turning them into a long-term investment with real, tangible value. Let’s break down the numbers and see why this approach makes financial sense. 

Key Financial Insight: 

With interest rates currently averaging around 7%, it may initially seem counterintuitive to borrow against your home at that rate. However, when this borrowed capital is redirected into a co-ownership model like Pacaso—where properties have historically appreciated at an average annual rate of 9.7%—the equation shifts dramatically in your favor.

Over a five-year period, a USD $350,000 investment in a Pacaso home could grow in value to approximately $556,000. Even after accounting for interest on the borrowed funds, you're left with a net gain of around $66,000. In this scenario, your investment grows FASTER than your reverse mortgage interest accumulates. Borrowing doesn’t reduce your wealth—it accelerates it.

Note: This is, of course, not guaranteed. It’s a projection based on recent available data.

But the benefits aren't purely financial. As a co-owner of a Pacaso property, you'll enjoy luxury living at a surprisingly low effective cost. Thanks to the property’s appreciating value, the monthly management fee—roughly USD $1,500—may be largely offset by your overall gains (such as the projected $66,000 net gain).

Over five years, you’ll enjoy around 30 weeks of unforgettable vacations in a luxury home that would otherwise be out of reach—at just a fraction of the cost of renting a similar property on the open market. It’s a dream come true!

And there’s more than just savings. With Pacaso, you’re not just investing in a second home — you’re unlocking a premium lifestyle. You can host your family and friends at no additional cost, creating unforgettable memories in your own luxurious vacation retreat.

But it doesn’t stop there.

Thanks to the Pacaso Swap program, your ownership goes beyond a single location. You’ll have access to an exclusive, ever-growing portfolio of luxury homes in more than 80 of the world’s most desirable destinations — from the sun-soaked beaches of Florida to the romantic streets of Paris. This means your next getaway could be in a completely different, stunning locale — without the need to purchase another property or pay anything extra beyond your regular Pacaso fees (note: travel and transfer costs to new locations are additional).

This is a lifestyle once reserved for the ultra-wealthy.

Perhaps the most compelling part of this strategy lies in its exit plan. When it’s time to sell your Pacaso, you can repay the reverse mortgage—along with any accrued interest—and keep any appreciation, which may help offset your monthly Pacaso fees.

Unlike traditional uses of reverse mortgage funds, which often erode home equity through short-term spending, this approach helps preserve your wealth while creating unforgettable moments.

It’s a strategy that blends smart financial planning with elevated living—an elegant way to enjoy the fruits of your labor without sacrificing your nest egg.
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​"The richest people in the world don't spend borrowed money—they invest it."
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In my next article, I’ll explore how reverse mortgage funds—yes, borrowed money—can be transformed into a wealth-building strategy or even a new source of income, all while preserving your equity.
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​If this caught your attention, just wait until you read my book—it might just change how you think about retirement, real estate, and your legacy.

My book reveals how a strategic combination of two proven and powerful models can transform your "impossible" dream vacation home into an attainable reality—without debt or overwhelming ongoing expenses.

This isn’t another empty promise—it’s a modern, strategic approach unlike anything you’ve seen before.

​Take advantage of this incredible opportunity—it’s yours for free!

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Check out Pacaso's luxury listings and discover your perfect second home or talk to a Pacaso strategist today.

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